Moira Deeming offers to delay John Pesutto bankruptcy proceedings for preselection guarantee

Australia Broadcast Center

a day ago

Victorian Liberal MP Moira Deeming has offered to delay bankruptcy proceedings against former opposition leader John Pesutto if the party bypasses its rules and guarantees her preselection for next year's state election.
Mr Pesutto tried to expel Ms Deeming, an outspoken first-term MP, over her attendance at an anti-trans-right rally in March 2023.
The event, entitled Let Women Speak and categorised by supporters as a women's rights event, was gatecrashed by neo-Nazis.
But Mr Pesutto's expulsion attempts backfired, and the Federal Court ultimately found he had defamed Ms Deeming on multiple occasions by conveying that she associated with neo-Nazis.
Earlier this year, the court ordered Mr Pesutto pay Ms Deeming $2.3 million in legal costs, which he cannot afford.
Lawyers for Ms Deeming have begun bankruptcy proceedings against the Hawthorn MP. He has less than three weeks to stump up the money or he'll be expelled from parliament.
As part of his efforts to avoid bankruptcy, Mr Pesutto and his backers have approached the Liberal Party to provide a loan.
While the proposal is still in development, it has growing support, with many Liberals keen to avoid a by-election in Hawthorn that would be triggered if Mr Pesutto declared bankruptcy.
The fracas has derailed Opposition Leader Brad Battin's attempts to present the Coalition as an alternative government and is the latest front in a long-running internal factional fight.
Ms Deeming and her supporters do not believe the party should be using members' money to assist Mr Pesutto.
On Monday, Ms Deeming wrote to Mr Pesutto, Mr Battin and party officials outlining a proposal to withdraw the bankruptcy proceedings if her conditions were met, including the party guaranteeing her preselection.
It's understood a challenge on her preselection has been prepared by local members and has a strong chance of succeeding.
Ms Deeming asked the party to endorse by "special resolution however described in constitutional terms so that I enjoy the right to serve my community without any internal distractions, which is something denied to me to date".
She also wanted Mr Pesutto to pay all the available funds he has, which she believes is $750,000, and that the remainder of his debt be deferred until March 30, 2027 to "give him sufficient time to secure the necessary funds and avoid bankruptcy".
Ms Deeming also wanted the Liberal Party, through Mr Battin, to provide her and her family an "unreserved written and public apology for the way I have been treated, for the imputations against my reputations, and that all the false allegations and defamatory slurs directed towards me are rejected".
Her other demands included all parties drawing a line under events and focusing on the election.
"It is because of the extraordinary support that I have received from rank-and-file members that I make this offer with the intention that the funds they have raised to fight the Labor Party remain solely directed to that important objective,'' she wrote.
The offer was expected to expire at 5pm on Wednesday.
Liberal sources said the offer has gone down like a lead balloon, with one source labelling it "preposterous".
"It hasn't sparked much interest at all,'' one senior party figure said.
Others are enraged that Ms Deeming is trying to override the party's preselection processes.
Mr Battin has been contacted for comment. Both Ms Deeming and Mr Pesutto declined to comment.